HOME DEPARTMENT

Police Funding (Allocations of Grant)

Hazel Blears: I have today placed in the Library a copy of the Home Secretary's proposals for allocation of police grant for England and Wales in 2004–05. The Home Secretary and I intend to implement the proposals subject to consideration of any representations we receive about them, and to the approval of the House.
	Funding the police properly remains a top priority for this Government. The settlement for 2004–05 builds on significant extra resources for policing in England and Wales over the last three years. Since 2000–01 total provision for policing to be supported by grant or spent centrally on services for the police has risen by over £2.3 billion or over 30 per cent.
	Total provision for policing to be supported by grant in 2004–05 will be £10,086 million. This is a cash rise of £403 million or 4.2 per cent. over the provision for 2003–04. This includes principal formula police grant, specific grants, capital related grants, direct Home Office spending and the formula spending on which revenue support grant is based.
	I have decided, exceptionally this year, to provide a standard general grant increase of 3.25 per cent. for each police authority in England and Wales. I recognise the financial pressures on police authorities and I am concerned to avoid excessive burdens on local taxpayers. My approach should help ensure that precepts are kept at a sustainable level and that policing services continue to improve. The grant increase is sufficient to cover inflation, in particular the pay increases announced for next year.
	In order to do this, I have added £140 million from wider Home Office resources and I have transferred into general police grant provision amounting to £100 million from existing and planned specific grants and central spending. These transfers will give police authorities greater scope to determine their own spending. We launched the National Policing Plan 2004–07 earlier this month. The overarching aim of the plan is to deliver enhanced police performance and public reassurance. Particular regard is given to the Home Secretary's priorities to provide a citizen focused service and to tackle the crimes that blight the lives of many. Other key priorities include tackling anti-social behaviour and disorder; continuing to reduce burglary, vehicle crime, robbery and drug-related crime and combating serious and organised crime. This settlement will support the priorities outlined in the National Policing Plan and continue to support our reform and modernisation process.
	There is continuation funding for recruits under the Crime Fighting Fund and Community Support Officers who are playing an important role reassuring the public on our streets; more funding from the Street Crime Initiative that has seen street crime reduce by an estimated 7 per cent. in England and Wales in April—June 2003 compared with the same period last year; Basic Command Unit funding to deal with policing problems most effectively at local level; continuation of the Rural Policing Fund to improve policing for communities with the most widespread populations; funding from the DNA Expansion Programme and other schemes to allow forces to make the most of new technology.
	In this statement, I want to outline the wider provision for support for the police service in England and Wales.
	The police grant settlement
	We propose to distribute the settlement as follows:
	
		Table 1: Police funding settlement for 2004–05compared to 2003–04 -- £ million(1)
		
			  Provision Variance 
			  2003–04 2004–05 £ million Per cent 
		
		
			 1. Direct funding for police authorities: 
			 Home Office Police grant 4,288 4,380 92 2.1 
			 Formula spending share(2) 3,776 3,988 212 5.6 
			 Specific grants for police authorities 663 657 -6 -0.9 
			 2. Capital Grants and Support 333 355 22 6.6 
			 3. Central spending on policing(3) 623 706 83 13.3 
			   
			 Grand total 9,683 10,086 403 4.2 
		
	
	(1) Rounded to £ million
	(2) Includes Revenue Support Grant/National Non Domestic Rates grants and product of assumed national council tax precept. Both years' figures exclude technical adjustment for resource equalisation (£600 million).
	(3)Includes provision for NCS/NCIS and Airwave core service charges.
	Police funding proposals within the Local Government finance system are being announced by my right hon. Friend Ministerial title the member for Greenwich and Woolwich today, and by the Welsh Assembly Government.
	Provisional general policing grants (ie Home Office Police Grant, Revenue Support Grant and National Non Domestic Rates) for English and Welsh police authorities in 2004–05 compared with 2003–04 are given in Table 2. Metropolitan Police funding
	Grant for the MPA will increase from £1,764.1 million to £1,822.3 million; a cash increase of 3.25 per cent. in line with all other police authorities. I have increased the formula provision for the MPA national and capital city functions from £202 million to £207 million to keep the formula up to date so that the MPA will receive appropriate benefit in future years. The MPA will receive separately provision for counter-terrorism, continuing funding made available this year. Details will be announced at a later stage. £15 million will also be made available to fund 750 CSOs recruited since 2002. The MPA will be eligible for specific grants from the Crime Fighting Fund, the Basic Command Unit Fund and the Street Crime Initiative.
	Specific grants for police authorities
	In addition to increased general grant, police authorities will continue to receive extra funding through several specific grants for particular schemes. Targeted grants were introduced as a direct response to what the police service and the public told us they wanted. Specific grants enable us to target funds to the areas where they are particularly needed.
	The measure of the success of specific funding is now clear. We have record police numbers helped by the Crime Fighting Fund; increased support for those living in rural areas; the Street Crime Initiative has helped reduce street crime; recruitment problems in London and the South East have been tackled through increased or new allowances for officers; the presence on our streets of Community Support Officers is providing the public with reassurance.
	Provision for specific grants in 2004–05 will be £657 million, a little lower than in 2003–04. This has enabled us to maximise general grant which may be spent at the discretion of police authorities.
	The main specific grants are:
	Crime Fighting Fund: £277 million will be provided to forces in 2004–05. This Fund has been a remarkable success. With the help of this Fund the Home Secretary's target of 132,500 officers by March 2004 was exceeded by nearly 4,000 this August. We will continue to pay for the 9,000 police officers recruited between April 2000 and March 2003 through the Crime Fighting Fund. I intend to pay for 60 per cent of the cost of the further 650 officers recruited under the Fund in 2003–04. The scheme will not be expanded further in 2004–05.
	Counter Terrorism: As last year, we will continue to provide additional funding to the Police Service to enable it to respond to the increased threat from international terrorism. This funding will be provided to both the Metropolitan Police Service and provincial forces in England and Wales and is in addition to existing funding streams for Counter Terrorism and Security.
	Basic Command Unit (BCU) funds: £50 million will be provided for BCUs. These are at the forefront of local policing. The grant is targeted towards forces with BCUs in high crime areas to help reduce crime in partnership with Crime and Disorder Reduction Partnerships, The money is directed so that all forces in England and Wales receive a proportion of the pot.
	Special Priority Payments: The pay and conditions package agreed by the PNB in May 2002 introduced new elements into police pay such as payments for the most experienced officers who can demonstrate a high level of professional competence and extra rewards for officers in the most difficult and demanding posts. I have split the allocation for 2004–05. £50 million will be available as a specific grant for special priority payments in 2004–05. A further £9 million has been rolled back into general grant.
	Community Support Officers (CSOs): £41 million funding will be available to support the costs of CSOs who free up police officer time, play a crucial role in providing reassurance and who have some powers to deal with low level crime and anti-social behaviour. The provision will continue to fund CSOs recruited in 2002–03 and 2003–04.
	Rural Policing Fund: £30 million is again provided for the particular needs of the 31 forces with the most widespread populations.
	Street Crime Initiative: Additional funding of around £25 million is being made available to support continued police operations against street crime. Distribution will be determined in December 2003.
	We will, as well, make available funding for the following:
	Seventy five per cent. of the cost of the London and South East Allowances (£49 million).
	Funding support for the cost of free travel for Metropolitan and City of London officers (£3.2 million).
	Promotion of volunteering within the Police Service (£7 million).
	Workforce Modernisation Implementation Fund. We have allocated £5 million in 2004–05 to support forces in developing an effective skills mix of police staff and police officers.
	The Home Secretary is committed to the DNA Expansion Programme and the benefits that it is delivering. Funding is provided for the continuation Programme.
	Police authority capital
	The Home Secretary and I intend to allocate provision of capital grant for 2004–05 in December.
	In addition capital grants for the introduction of Airwave will be made available to those authorities taking up the radio communications service in 2004–05.
	There will be capital provision for the case and custody project of the Criminal Justice IT system. This will be supported by resource funding.
	£40 million is being provided for the capital costs of developing the Metropolitan Police Authority's Command Control and Communications Information (C3i) System. In total £140 million is being provided towards this project.
	Central spending on policing
	Central spending on policing will total £706 million. The main specific items are the DNA expansion programme, the National Strategy for Police Information Systems and the Airwave contractor's core charges. In addition, provision is made for the costs of organisations supporting policing, mainly the Police Information Technology Organisation (PITO), Centrex (the Central Police Training and Development Authority), National Criminal Intelligence Service/National Crime Squad and scientific and technical facilities. Efficiency
	The settlement continues to take account of the Home Secretary's commitment to improve efficiency and effectiveness in the police service. Guidance on efficiency plans for 2004–05 will be issued shortly. Future Police Grant allocations will be considered in the light of police authorities meeting the current target for 2 per cent. efficiency improvements. The efficiency target will be examined during the Spending Review 2004. Targets reflecting each authority's circumstances may be more appropriate than a universal one. We shall also be considering the balance between cash releasing efficiencies and those which are the result of service improvements.
	Conclusion
	We are continuing to invest substantially in the police service to ensure delivery of an effective and efficient police service that has the support and confidence of all communities. We have listened carefully to the concerns of police authorities in determining this settlement. We have ensured that all forces will receive an increase of 3.25 per cent. in general grant which is well above general inflation of 2.6 per cent. This settlement provides the resources to help the police do their job more effectively, building on a strong platform of record police officer numbers, a growing policing community and reduced levels of crime.
	
		Table 2: Police grant allocations by English andWelsh police authority
		
			 Police Authority 2003–2004 2004–2005 % Change 4  
			  Allocation 1 Allocation 1  
			  £m £m  
		
		
			 English Shire forces 
			 Avon & Somerset 157.1 162.2 3.3% 
			 Bedfordshire 60.1 62.1 3.3% 
			 Cambridgeshire 71.1 73.4 3.3% 
			 Cheshire 103.9 107.2 3.3% 
			 Cleveland 84.1 86.8 3.3% 
			 Cumbria 57.7 59.6 3.3% 
			 Derbyshire 97.9 101.2 3.3% 
			 Devon & Cornwall 161.5 166.7 3.3% 
			 Dorset 61.6 63.6 3.3% 
			 Durham 81.5 84.2 3.3% 
			 Essex 155.9 160.9 3.3% 
			 Gloucestershire 57.0 58.9 3.3% 
			 Hampshire 184.5 190.5 3.3% 
			 Hertfordshire 101.5 104.8 3.3% 
			 Humberside 110.9 114.6 3.3% 
			 Kent 176.8 182.6 3.3% 
			 Lancashire 177.1 182.9 3.3% 
			 Leicestershire 98.8 102.0 3.3% 
			 Lincolnshire 58.7 60.6 3.3% 
			 Norfolk 79.6 82.2 3.3% 
			 North Yorkshire 70.4 72.7 3.3% 
			 Northamptonshire 62.2 64.3 3.3% 
			 Nottinghamshire 123.6 127.6 3.3% 
			 Staffordshire 105.8 109.2 3.3% 
			 Suffolk 63.9 66.0 3.3% 
			 Surrey 85.4 88.2 3.3% 
			 Sussex 153.1 158.1 3.3% 
			 Thames Valley 205.9 212.6 3.3% 
			 Warwickshire 48.2 49.8 3.3% 
			 West Mercia 104.4 107.7 3.3% 
			 Wiltshire 58.7 60.6 3.3% 
			   
			 English Metropolitan forces 2  
			 Greater Manchester 380.8 393.3 3.3% 
			 Merseyside 240.5 248.4 3.3% 
			 Northumbria 214.3 221.4 3.3% 
			 South Yorkshire 172.3 178.0 3.3% 
			 West Midlands 386.5 399.4 3.3% 
			 West Yorkshire 289.4 298.9 3.3% 
			 London forces 
			 GLA-Police 1764.1 1822.3 3.3% 
			 City of London 32.5 32.7 N/A 
			 English Total 6,699.2 6918.2 3.3% 
			
			 Welsh forces 3  
			 Dyfed-Powys 49.3 50.9 3.3% 
			 Gwent 69.6 71.8 3.3% 
			 North Wales 73.3 75.7 3.3% 
			 South Wales 162.9 168.2 3.3% 
			 Welsh total 355.1 366.6 3.3% 
			   
			 Total 7,054.3 7,284.9 3.3% 
		
	
	Notes: 1 . Rounded to the nearest £100,000. Grant as calculated under the Local Government Finance Report (England) and Local Government Finance Report (Wales). This includes the Metropolitan Police special payment, and the effects of floors and ceilings. 2 Figures for the City of London are Police Grant only. RSG is allocated to the City of London in respect of all functions and is unhypothecated. The City of London is grouped with education authorities for the calculation of grant floors and ceilings and receives an increase of 10.57 per cent. 3 Figures for Welsh exclude any adjustments for capital financing. In addition to the general grant increase, North Wales will receive support for a new PFI project. 4 A "Floor" increase of 3.25 per cent. has been applied to all police authorities. Minor variations from 3.25 per cent. in the increase in grant occur mainly due to capital financing adjustments. Percentage increases are rounded to one decimal place.

CULTURE MEDIA AND SPORT

Draft Gambling Bill

Tessa Jowell: I have today published the major sections of the draft Gambling Bill for pre-legislative scrutiny.
	The Bill will make major changes to the way in which gambling is regulated and controlled in Great Britain. It will build on the work undertaken by Sir Alan Budd and the Gambling Review Body that he led.
	It is based on the three key principles:
	First, the principle that the system of gambling law and regulation must keep the gambling industry free of crime. Our industry has a high international reputation for integrity, which must not be put at risk;
	Second, the law must ensure that gambling is conducted fairly, so that players know what to expect; and
	Third, there must be effective protection for children and the vulnerable.
	The current laws on gambling dating back to the 1960s have failed to keep pace with rapid technological change. Attitudes to gambling have changed too. The law needs to be modernised but we must make sure that it is flexible enough to cope with further change.
	However, modernisation does not mean a gambling free for all and reform must not be allowed to generate an upsurge in problem gambling. The provisions published today combine a managed relaxation of outdated restrictions with the strongest protections for children and the vulnerable. Following reform, there will be greater choice for adults but there will remain important limitations on what types of gambling are available and where they can be located.
	Investor in People
	In A Safe Bet for Success (published in March 2002, Cm 5397) we accepted the vast majority of the Gambling Review's recommendations. Since then, we have been working closely with the interested industries, representatives of groups encouraging responsible gambling, local authorities, consumer groups, other Government Departments and the devolved administrations to prepare draft legislation that would give effect to this new system of regulation.
	The proposals published today build on and subsume the draft clauses published in July 2003. They will simplify regulation by establishing a single regulator for commercial gambling. The Gambling Commission will have wider functions, greater flexibility to act and stronger enforcement powers than the Gaming board that it will replace. Local authorities will license all types of gambling premises, to ensure that local people have a say in where gambling outlets are sited. The draft Bill will keep crime out of gambling and protect the industry's reputation for integrity and excellence. The Gambling Commission will be a strong, effective regulator and will root out illegal gambling; its staff will have statutory powers of entry, search and seizure.
	The draft Bill also removes unnecessary restrictions on the ability of business to meet consumers' wishes. The rule allowing casinos to be established only in designated parts of the country will be abolished, as will the rule requiring membership of a casino or bingo club at least 24 hours before playing. Remote gambling, for example on the Internet, interactive TV and through mobile telephones, will be licensed and regulated effectively in Great Britain for the first time.
	The published clauses also strengthen safeguards protecting children and the vulnerable. The current minimum age limits for access to gambling products will be retained and enforced strongly. The draft Bill also includes reserve powers for a statutory levy on gambling operators. These powers will be used if the gambling industry does not keep its promises to contribute to a charitable trust funding research, prevention and treatment programmes for problem gambling.
	A Joint Committee of both Houses has been convened to examine the Government's draft proposals. I am confident that what they will scrutinise is a set of mature proposals that will achieve a sensible reform of the law on gambling. Such scrutiny will improve the legislation and build parliamentary understanding and public confidence, enabling us to strike the right balance between deregulation and the protection of young and vulnerable people.
	I intend to publish the remaining sections of the draft Bill early next year.

DEFENCE

Medical Supply Agency

Adam Ingram: Key targets have been set for the Chief Executive of the MSA for Financial Year 2003–04. The targets build on the progress already made by the Agency since it formed in March 1996 and are as follows:
	Key Target 1
	Meeting Operational Medical Equipment and Materiel Requirements
	To build and deliver, to schedule and within budget, all modules on the Operational Build programme as agreed with our key customers, the Defence Medical Services Department (DMSD), and to meet all authorised operational requirements for equipment, medical consumables and blood products.
	Key Target 2
	Meeting the Medical Equipment and Materiel Requirements for the in-vear Exercise and Training Programme
	To build and deliver, to schedule and within budget, all modules on the Exercise and Training Build Programme as agreed with DMSD, and to meet all authorised requirements for equipment, medical consumables and blood products.
	Key Target 3
	Meeting Customer Requirements
	To meet demands for Category B items (commonly used items with a unit cost of less than £100 and approved by DMSD) from units and authorised demanders in the UK and overseas within the MSA Charter Response Times (Next Day, 3 Days), as follows:
	
		
			  Per cent 
		
		
			 (a) Top 250 by value  
			 Within Charter Response Time 95 
			 Follow up (within 5 days) 97 
			  
			 (b) Overall 
			 Within Charter Response Time 90 
			 Follow up (within 5 days) 97 
		
	
	Key Target 4
	Procurement of Medical Equipment
	Develop and implement a strategy to improve medical equipment and materiel Whole Life Management with our customers.
	Key Target 5
	MS A Change Programme
	To work with our customers and stakeholders with the objective of delivering the key elements of the MS A Change Programme which will deliver significant improvements in the effectiveness and efficiency of the medical supply chain, contribute to CDL's strategic objectives, and improve delivery to our customers.

Armed Forces Pension Scheme

Ivor Caplin: After the introduction of the Armed Forces Pension Scheme (AFPS) in 1973, the Royal Air Force has, for the purposes of awarding pensions, been reviewing War Pension Scheme decisions on whether injuries, ill-health or deaths were due to service using the normal civil standard of proof ("balance of probabilities"). The War Pension Scheme uses a "beyond reasonable doubt" standard in favour of the claimant for the first seven years after leaving service. This interpretation of AFPS scheme regulations was challenged in a complaint to the Pensions Ombudsman who found in favour of the claimant, Mrs Hulme. The Ombudsman's decision was upheld on appeal in the High Court and has today been further upheld in the Court of Appeal on the basis that the relevant regulations required AFPS administrators to accept the decision on attributability taken under the War Pension Scheme. I have decided that the Ministry of Defence will not seek leave to appeal the Court of Appeal judgement further to the House of Lords.
	Following this decision, the Department will now review previous decisions on entitlement to attributable pensions for those conditions that led to invaliding or to death-in-service where AFPS administrators have previously not accepted War Pension Scheme decisions on attributability. Awards will be backdated and the Department will consider compensation to reflect the effect of inflation on the value of pensions over the period of non-payment. I expect to make a further announcement on this matter early in the New Year.
	Initial research indicates that the incorrect interpretation of the regulations is likely to have affected Royal Air Force compensation payments since soon after 1973, and Army and perhaps some Royal Navy claims since 2000.
	We do not know how many pensioners are likely to have been affected or the likely cost. However, a substantial number of pension award decisions will need to be reviewed to ensure that all those at risk are identified. At present, we expect it to take around a year to complete this review. Payments will be made as soon as possible. We will also be using appropriate advertising to publicise to the ex-Service community those categories of pensioner who might be affected and how claims can be lodged. We will consider these as quickly as possible. The judgement does not affect the benefits paid under the War Pension Scheme.
	The Department will abide fully by the Court of Appeal decision with respect to claims from the past or where a decision is still pending. However, I have decided that, for the future, as soon as the relevant changes can be made to secondary legislation, the Department should establish the right of AFPS administrators to take a second decision on attributability, using the balance of probabilities standard of proof. This is the standard of proof used for other public service occupational schemes, as well as for decisions in the civil courts and for the recently proposed new Armed Forces Compensation Scheme.

ENVIRONMENT FOOD AND RURAL AFFAIRS

Autumn Performance Report

Margaret Beckett: The 2003 Autumn Performance Report, which highlights my Department's progress against all its outstanding Public Service Agreement targets, will be published on 21 November. Copies will be placed both Libraries of the House.